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Gary Rabin took over as CEO of Advanced Cell Technologies in 2010 after the death of the previous CEO, William M. Caldwell, and has seen the company through legal and financial hardships in the last three years.

Editors note: This story was updated at 10:45 a.m. Thursday to reflect the Securities and Exchange Commission's investigation into Rabin's stock sales.

Advanced Cell Technology said today that Gary Rabin, who has been CEO since 2010 and has overseen the company through federal allegations of an illegal stock scheme undertaken by his predecessors, will leave that role effective immediately.

The Marlboro, Mass.-based biotech, which is developing drugs for human and animals based on human cells, said the company will immediately begin a search for a replacement. It has appointed CFO and Executive Vice President of Corporate Development Edward Myles as interim president.

A statement from Advanced Cell Technology (OTC: ACTC) did not specify a reason for the departure other than to say, “the board appreciates the work that Gary did to stabilize the company since he became the CEO in December 2010.”

However, a filing from the Securities and Exchange Commission dated Dec. 23 revealed that the federal agency is investigating possible violations at the company due to Rabin's sale of stock between February 2011 and January 2013 without reporting it. The filing indicates the company has been aware of the potential violations since at least April of 2013. The company did not immediately return a request for comment on the matter.

According to a filing this week with the SEC, Rabin will get seven months of severance pay at his base salary, followed by a one-time payment of $15,000. In 2012, in addition to a base salary of $525,000, Rabin earned $315,000 in bonuses. He also owns 29 million shares of the company’s stock, which is currently valued at 6 cents a share.

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